Sales Contract The Board of Perth-based bauxite explorer and developer, Bauxite Resources Ltd (ASX: BAU, ‘’BRL’’) is pleased to announce that it has signed an FOB Sales Contract with Hongfan International Limited (“Hongfan”) for three 40,000 tonne spot trial shipments of its premium run of mine (ROM) Darling Range low reactive silica bauxite. These spot shipments will enable BRL to showcase to Chinese alumina refineries the superior attributes of its premium Darling Range low reactive silica bauxite. BRL believes that the processing of its high grade bauxite with low reactive silica will be favourably received by the end user refineries and that this small volume sales contract will be the precursor for larger off take agreements with Hongfan, mineral traders and refineries based in China. Railing of Ore Commences Contemporaneously with the signing of the Sales Contract, BRL today commenced operations to rail bauxite from its Darling Range North mine site to the Kwinana Port in preparation for shipping to meet the abovementioned sales contract.
SALES CONTRACT SIGNED WITH HONGFAN INTERNATIONAL LIMITED FOR SPOT SHIPMENTS AND RAILING OF ORE COMMENCES
Hongfan is part of a comprehensive group corporation integrating industrial investment, bulk commodity operations, mineral resources development, international investment and finance. As a producer of aluminium and a leading importer of bauxite, alumina and other minerals, Hongfan has interests in the manufacture of non-ferrous metals and is seeking to expand its interests in bauxite and alumina. Hongfan wishes to establish a long term working relationship with BRL. Specifically it wishes to source a long term supply of bauxite from BRL and establish strategic cooperation with a view to forming a long term relationship.
The Sales Contract is for three shipments of 40,000 dry metric tonnes of bauxite. It is expected that the shipments will occur in November 2009, December 2009 and January 2010.